Marketing Analysis of AirAsia: Strategies for Future Growth

Strategic marketing management

Contents
Introduction.................................................................................................................................................2
PESTLE Analysis...........................................................................................................................................4
Competitor’s Analysis-.................................................................................................................................6
Firm’s Analysis.............................................................................................................................................8
Marketing Strategies development.............................................................................................................9
Strategies selection...................................................................................................................................10
Conclusion.................................................................................................................................................11

Introduction
AirAsia is one of the leading low fare Airlines that has been growing on a rapid pace since 2001. It has
won award related to low cost carrier in Asia. This airline was founded by a government- owned
conglomerate DRB-Hicom in 1993. Air Asia was in huge debt and at that time Tony Fernandez brought it.
Fernandez converted the whole situation and turned the losses into profits in 2002 and introduced some
new routes from Kuala Lumpur International Airport. Airs Asia always believed in providing low fare
tariffs and no frills business idea. It always feels that keeping low costs always leads in high efficiency of
the business. Efficiency results in generation of savings that are passes on to the customers in order to
make inexpensive air travel can become a reality. AirAsia is known for a revolution in air travel by which
more people have travelled in their choice of transport. Their idea was ‘Now Everyone can fly’. The
quality of services of AirAsia is also very good and it always tries to provide a better experience to its
customers. ‘AirAsia’ always looks for new market opportunities that can make them more efficient and
effective in its operations.
In this report, a marketing analysis of AirAsia has been done by assessing its internal as well as external
environmental factors. There are some marketing strategies that can be taken into consideration for the
future growth of the organization. AirAsia uses Customer Relationship Management for its performance
measurement. It basically related to the satisfaction of customers. It includes various strategies that help
in retaining, acquiring and partnering the customers for creating value for the customers. There is a lot
of information given on the official website of AirAsia related to the hospitality it provides to the
customers (Jones, 2017).

PESTLE Analysis
1. Political- Due to Globalization, a trend has been started related to privatization as well as
deregulation of governments all over the world that has been resulted in the consolidation of
airline industry. Government plays a very important role in the airline industry in Asia. Most of
the airlines like East and Southern Asian Countries have a full state ownership, control and
management (Hitt, 2011).
Opportunities- Privatization and deregulation related to opportunities declared by the
government for airport deals and initiation of new routes through open- skies agreements
between different countries (Etzel, Walker & Stanton, 2007). It helps in getting an opportunity to
access domestic routes. It leads in the trial of long flights those results in penetration of
undeveloped market share (Seefeld, 2015).
Threats- There is a possibility of affecting customer confidence due to the prevailing
globalization as there are increased chances of accidents, disasters and terrorist attacks. Due to
the losing of customer’s confidence, AirAsia can face a situation of losses. As it was mentioned
earlier, AirAsia always focused on its low fare strategy, it is related to aviation regulations,
government restraints and policies. Comparatively there are high amount of threats than
opportunities ("THE MARKETING MIX: A REVIEW", 2014). There is high government interference
on compensations and airport deals, so AirAsia can only try to minimize the negative effects by
selecting some favorable routes.
2. Economic- There is many economic factors that create an impact on AirAsia and its operations.
Some factors can be converted into threats and some can become opportunities.
Opportunities- There is many economic downturns that results in downgrade of any industry. It
can be considered as an opportunity for AirAsia because there can be a cost reduction due to
that there is a decrease in the level of competition. AirAsia can continue to sell its tickets on low